Read This Before Starting on Smartstore — A Full Rundown of Business Registration
How should you handle your business address when starting out as a Smartstore or Coupang seller? We cover everything from business registration and e-commerce business filing to address-disclosure obligations and how to use a virtual office.
Editor's Note
What if your home address ended up printed on your business registration certificate and made fully public on your online store?
When you start selling on Naver Smart Store or Coupang, there's a problem you run into sooner than you'd expect: the business registration address.
E-commerce/mail-order businesses are legally required to disclose their address, and anyone can look it up. For those starting out from home, that's a pretty uncomfortable issue.
In this post, we've put together the business registration process for Smart Store and Coupang sellers, along with ways to solve the address problem.
ℹ️ Q1. Can I sell on Smart Store or Coupang without registering a business?
It depends on the platform.
On Smart Store, you can start as an "individual seller" without registering a business. However, if you sell continuously, the tax office can register you as a business on its own authority, and failing to register can result in a penalty tax of 1% of your sales.
On Coupang, a business registration certificate and an e-commerce/mail-order business report are required from the moment you join. Without business registration, you can't even register as a seller.
The bottom line: if you're serious about starting online sales, it's safest to consider business registration essentially mandatory.
ℹ️ Q2. How do I file an e-commerce/mail-order business report?
If you sell products online, you need to file an e-commerce/mail-order business report.
The reporting process
- Complete business registration — First, register your business at your local tax office.
- Sign up for an escrow (purchase safety) service — Get a usage confirmation certificate through a payment gateway (PG) provider.
- Apply on Gov24 — You can apply easily online. You can also visit your local city/county/district office.
- Processing complete — The report certificate is issued within 2–3 business days.
Who is exempt
Not every business needs to file an e-commerce/mail-order business report.
- Simplified taxpayers are exempt from filing.
- Businesses with fewer than 50 transactions in the previous year are also exempt.
- However, some platforms like Coupang require the report even from exempt businesses, so it's a good idea to file it in advance.
✅ If you're curious about the difference between simplified and general taxpayers, we've covered it in detail in the post below.
VAT every business owner should know
Registration license tax
When you file an e-commerce/mail-order business report, a registration license tax is charged.
• Cities with a population of 500,000+: 40,500 won • Other cities: 22,500 won • County (gun) areas: 12,000 won
It is automatically renewed each year as of January 1, so the registration license tax is charged every January. You can pay it on Wetax or Etax.
ℹ️ Q3. Do I really have to disclose my business address?
Yes, it's a legal obligation.
Under Article 13 of the Electronic Commerce Act, an e-commerce/mail-order business must disclose its business name, representative's name, and place of business address on its online store. Everything down to the building and unit number must be disclosed.
The Fair Trade Commission also publishes e-commerce/mail-order businesses' identity information (phone number, address, etc.) on its website.
In other words, the address you enter when registering your business becomes publicly available for anyone to look up.
If you run your online store from home, you need to be aware that your home address could be exposed exactly as is.
✅ To sum up so far
- You can start on Smart Store as an individual seller, but business registration is required once you sell continuously. On Coupang, it's required from the moment you join.
- The e-commerce/mail-order business report can be filed online via Gov24. Simplified taxpayers are exempt, but platforms may require it, so filing in advance is recommended.
- The business address is legally required to be disclosed. If exposing your home address is a concern, you'll need a separate address.
So how can you solve the address problem?
ℹ️ Q4. How can online sellers solve the business address problem?
There are broadly three options.
A home address costs nothing, but as explained above, it comes with the burden of having your address exposed. If you're renting (jeonse or monthly rent), you also need your landlord's consent.
Renting a separate office carries a heavy cost burden, and many online sellers don't actually need a physical workspace.
A virtual office is a service that lets you use an official business address without actually being present there. You can secure an address for a reasonable cost of around 10,000–30,000 won per month, and a formal lease agreement is provided as well.
Find a virtual office near you
ℹ️ Q5. Can I register a Smart Store or Coupang business with a virtual office?
Yes, you can.
E-commerce is a business type that can be registered in a "business facility" or a "Class 2 neighborhood living facility." As long as the virtual office address falls under one of these uses, there's no problem registering your business.
How to use a virtual office
- Sign a virtual office contract — Choose a virtual office plan in your desired area and sign the contract.
- Receive the lease agreement — Get the formal lease agreement needed for business registration.
- Apply for business registration — Complete registration via Hometax or at the tax office.
- File the e-commerce/mail-order business report — File on Gov24 and pay the registration license tax.
- Join the platform — Register your business information on Smart Store or Coupang and start selling.
What to check when choosing a virtual office
Not all virtual offices are the same. Be sure to check the following.
- Building register use — Confirm the address is suitable for business registration.
- Whether a formal lease agreement is provided — It may be needed during the tax office's review.
- Mail handling service — Whether they can receive and notify you of tax notices, registered mail, etc.
- Sublease consent — Whether the building owner's consent to subleasing is in place. From 2026, the requirement to prove that you actually operate the business is being strengthened when applying for tax reductions. Rather than merely borrowing an address as a formality, it's important to have substantive grounds such as a legitimate contract and mail handling.
⚠️ Worried about your virtual office registration being rejected? Check it in advance with the checklist below.
See the virtual office rejection checklist
ℹ️ Q6. Can I sell on Smart Store or Coupang as a simplified taxpayer?
Yes, you can.
Simplified taxpayers (with annual sales under 104 million won) can join both Smart Store and Coupang. There are, however, a few differences.
• Simplified taxpayer: VAT of 1.5–4%, limited ability to issue tax invoices, exempt from e-commerce/mail-order business reporting • General taxpayer: VAT of 10%, can issue tax invoices, e-commerce/mail-order business report required
If you're starting out small in the early stages, registering as a simplified taxpayer can help reduce your tax burden.
However, since the areas excluded from simplified taxation have been expanded to 64 regions in 2026, if your business address falls within an excluded area, you may be converted to a general taxpayer regardless of your sales. When choosing a virtual office, it's a good idea to also check whether that address is subject to simplified-taxation exclusion.
✅ 2026 online seller business registration: just remember these
- You can start on Smart Store as an individual seller, but business registration is required once you sell continuously. On Coupang, it's required from the moment you join.
- The e-commerce/mail-order business report can be filed online via Gov24. The registration license tax is 12,000–40,500 won depending on the region.
- The business address is legally required to be disclosed. Under the Electronic Commerce Act, everything down to the building and unit number must be disclosed.
- A virtual office can solve the address problem. E-commerce is an eligible business type, at around 10,000–30,000 won per month.
- Simplified taxpayers can also join. However, with the 2026 expansion of simplified-taxation-excluded areas, you need to check your business location.
Wrapping up — Online sellers, sort out your business address first
Whether it's Smart Store or Coupang, once you start selling online, business registration and the address issue are unavoidable.
In particular, because an e-commerce/mail-order business has its address disclosed, it's best to first decide whether to use your home address or secure a separate one.
With a virtual office, you can have an official business address at a reasonable cost, and you can also get a formal lease agreement and mail handling service along with it.
CoworkCity operates virtual office services in major regions across the country, providing the address you need for business registration along with a formal lease agreement. If you're looking for a virtual office for online sellers, take a look.
